Anna Maria RichardsWomen are overcharged every day, and data proves this. Men often pay 7% to 37% less than women for the same products and services, even though men are often paid 22% to 46% more than women. For this reason, women need to be cautious when shopping for car insurance.
What Every Woman Needs to Know About Car Insurance
The fight for gender equality is often long and exhausting. By arming yourself with knowledge, you can pay less for car insurance, regardless if you have a clean or spotty driving record.
1. How Car Insurance Rates are Calculated
Car insurance rates are calculated based on several factors, some of which are out of your control. The following factors seem to affect national car insurance rates the most:
- State Requirements: Premiums for state-required coverage vary as much as 318%.
- Age: After 25, your premiums start to decrease until you pass 65 due to accident risk.
- Car Make and Model: Some cars are cheaper to insure as they’re cheaper to replace.
- High-Risk Violators: Severe traffic violations will increase insurance premiums.
- Yearly Mileage: The more you drive your car, the more you’ll pay for insurance.
- Credit History: A poor credit history affects your insurance in most states.
- Driving Record: The more you drive your car, the more you’ll pay for insurance.
- Zip Code: Where you live can raise or lower your premiums (aka, city vs. rural).
- Marital Status: Although the science is iffy, married couples pay less for insurance.
- Gender: Women pay less until 45. After 45, they’re charged 6% more than men.
Commercial vehicles may be subject to higher premiums, but you can offset this expense with deductions. Inflation and special certificates, such as SR-22 and FR-44, also affect your rates.
2. Understanding SR-22 and FR-44 Insurance
SR-22 is a certificate of financial responsibility issued by the state or court that proves the driver meets the minimum liability coverage required by law. The FR-44 is similar to the SR-22, but it proves that drivers have coverage that exceeds the state’s minimum coverage requirements.
SR-22 or FR-44 are typically issued to drivers who’ve been convicted of a DUI or DWI, so your insurance rates will increase because of it. While it can be difficult to find cheap coverage for FR-44 or SR-22 car insurance, it’s possible to find better rates online via Cheap Insurance.
3. There are Ways to Pay Less for Insurance
Besides shopping around for better rates between insurers, you can pay less for car insurance if you raise your deductible, take a defensive driving course, or take advantage of anti-theft device installation or membership discounts. Check out this article for other ways to save on insurance.
4. Differences Between Common Insurance Types
There are several different kinds of car insurance, but liability, collision, and comprehensive are the most common. Liability only covers the other person’s medical bills and vehicle repairs after a crash, but collision covers your own medical bills and vehicle repairs after an accident.
On the other hand, comprehensive insurance covers damage to your own vehicle if you’re in an accident with another car, you’re a victim of a single-car accident, or you hit a stationary object.
However, you should also look into car insurance add-ons which include:
- Uninsured Motorist Coverage
- Personal Injury Protection
- Medical Payments Coverage
- Gap Insurance
- Umbrella Insurance
- Rental Insurance
- Usage-Based Insurance
If anyone else but you is driving your car, you should get non-owner car insurance. Otherwise, you’ll be liable to pay for any accident the other party gets in, regardless if they have insurance.
5. Don’t Let Your Insurance Policy Lapse
Insurers will charge non-insured drivers more for car insurance, even if they’ve remained insured with the same company for many years. If you let your insurance policy lapse, it gives insurers an excuse to bump your rates. Never cancel your policy until you have a new one.
